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Media Statement
by Ronnie Liu
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(Kuala Lumpur, Thursday) :  The Coalition Against Toll received a copy of the agreement signed between the Government and Litrak,the toll concessionaire of the highly lucrative LDP Highway.

This is the first time the coalition has obtained such an agreement. An initial reading confirmed beyond doubts that the agreement was lopsided and totally in favour of the toll concessionaire.

Litrak, just like any other toll concessionaires in the country, is an Umno related company. Irama Duta holds 51% shares and the remaining 49% goes to Gamuda.

The company has recovered all its building cost just a few years after its operation in 1998. The company has all together 34 years to collect toll. Most parts of the LDP Highway were existing roads except for two new roads ( the Kg Sg Penchala section and a new road over the mining pond and Sg Klang to Sunway Interchange on the Shah Alam Epressway.

Litrak was allowed by the BN Government to build 4 toll plazas along the LDP. The Government also allowed the Concessionaire to fix the Agreed Toll regardless of how much profit the concessionaire has made during the tenure of agreement! The Agreed Toll was also fixed without factoring the increase of traffic volumes over the years.

There is no rationale and justification for such a lopsided agreement.

Just take the example of Class 1 Vehicle (ordinary passenger cars you and I were driving) that passing through the Sunway LDP toll plaza as an illustration.

Under the agreement, from 1998 to 2006, the road-users supposed to pay RM1.50 ; from 2007 to 2015, the fee supposed to be increased to RM2.10 ; and from 2016 to end of concession period, it will be increased to RM3.10.

Now, because of the protest from the Coalition Against Toll in 1998, it was slashed to RM1.00 instead of RM1.50; but the Government has to pay the full compensation to Litrak to make up for for the shortfall. So, Litrak not only loses nothing in revenue, it also got to receive compensation from the Government well in advance on top of getting extension of toll collection for another one year.

This year, the toll fee was fixed at RM2.10 according to the agreement. It was again slashed to RM1.60 following the protest from the Coalition. But the Government has no choice but to pay compensation in advance to Litrak.

This will happen again in 2016 because the BN Government has already committed to Litrak in the lopsided agreement.

The Coalition (make up of MTUC, Jerit, Suaram, Youth4change and opposition parties like DAP, PAS, Parti Keadilan Rakyat and PSM) is now challenging the BN government to disclose all the agreements signed with the toll concessionaires if they have nothing to hide. Let the people be the judge.

The Coalition also wanted the Government to suspend the toll increase and immediately start a reviewing process of all agreements signed with toll companies.

So, asking the Government to reduce the toll fees now is never a solution thanks to the lopsided agreement. Litrak and all other toll concessionaires will be more than happy to accept the arrangement as they get to receive the compensation well in advance without losing a single sen in toll collection.

What is the way out for the rakyat then?

The real solution lies in changing the government. Only a change in government would allow a review of all agreements signed with the Umno or Umno related toll companies with the new government. There is no two ways about it.

It appears to all that demonstrations would not make the arrogant BN government leaders to change their minds. So what is the use of this coming Sunday demonstration to be held at the Sunway Pyramid shopping centre?

The demo is to mark the protest of the Malaysian people against the hefty (60% increase) toll hike. It also serves to wake up Malaysians who are still 'sleeping", thinking that they have voted for a government that cares for their interest.

The Coalition has invited the top guns from various NGOs and opposition parties to address the people on the issue of toll hike.

Please bring your friends and families along. C U on Sunday!

(4/1/2007)